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Electric tractor startup Monarch closes doors, selling off technology

The start-up tractor company Monarch says a large global equipment manufacturer is acquiring its core technology.

After seven years of developing the first autonomous electric tractor, the company says unforeseen challenges have caused it to end operations.

During its expansion, Monarch named CNH Industrial as a minority investor and formed collaborations with Ag Growth International (AGI), Dairy Farmers of America, Verizon Business, and others.

The company had been promoting USDA grants and state incentives to help farmers offset equipment costs for the Ohio-manufactured tractors.

The start-up was valued at more than $500 million by 2024, but soon began downsizing to transition technology to a software-based platform.

In October, an Idaho-based equipment dealer sued Monarch for what they called defective tractors that did not operate autonomously and for breach of contract.

Bloomberg is reporting the equipment company Caterpillar is making the acquisition.